Under H.R. 1, P.L. 119-21, the law known as the One Big Beautiful Bill Act (OBBBA), new federal income tax deductions are available for qualified tips and qualified overtime compensation. These deductions are effective for tax years 2025 through 2028.
Final regulations for occupations that customarily and regularly receive tips and definition of qualified tips were issued on April 10, 2026. Note that previously, on Sept. 4, 2025, the Treasury posted a preliminary list of occupations in chart format. See